“Which credit card is best for me?” – It’s a question that my college bound daughter asked on her way to her university. She was going to be on her own for the very first time in eighteen years and I wanted her to be not only financially responsible, but also independent. Before I go into which credit card might be best for you, however, how are the new year resolutions coming along? How many of you have decided to save more this year?
This is a sponsored post written by me on behalf of Navy Federal Credit Union. All opinions are 100% mine.
While financial resolutions aren’t something I aim for, saving more money is something that I strive to achieve every year, but unfortunately, it rarely happens. I’m like most Americans, I walk around with a wallet filled with cards, and very little to no cash. My son asked me just recently for $10 to which my response was, I didn’t have it. Not because I’m broke, but because I never have cash on hand.
When I was younger, there would always be cash in my wallet, you know – “vex money” for dates that didn’t meet your expectations. How many of you still walk around with extra stash of cash for such an occasion? It’s very rare to find someone with cash, especially since the use of credit and debit cards has become the norm. With credit cards becoming so popular, how do you know which card is right for you? Today I want to share with you a few credit cards solutions that may be just what you’re looking for.
Student credit cards
This is generally the first card that most college students receive and it’s available for those enrolled in college. Since most college students are fresh out of high school, they very rarely have a credit history. If used wisely, it’s a stepping-stone to building their credit. While most student cards don’t give many rewards, building your credit can qualify you for those reward cards that you have your eyes on. When my daughter enrolled in university, we were able to get her very first credit card, which she uses, for gas and necessities. She now has excellent credit thanks to her credit usage.
Secured credit cards
You may remember my story about having bad credit after college. I was maxing out my cards buying unnecessary items, and when I graduated from college with no job prospects, I was unable to pay off the balances. With unpaid cards on my credit report, my credit score was in the 500’s so therefore I was unable to get credit when I needed it. In order to rebuild my credit a secure credit card was obtained. A secured credit card requires you to deposit your own funds (collateral) before you can be approved. So for example, if you deposit $750, then you will then in turn have $750 for your credit usage. Secured credit cards are perfect for those with poor credit, or those trying to rebuild their credit.
Unsecured credit cards
Unsecured credit cards are the opposite to secured credits cards and are the most common. You don’t need a collateral and these cards can generally be obtained from your bank or most financial institutions.
Reward credit cards
Reward credit cards are very popular and allows you to earn “rewards” for making purchases. They generally fall under three categories: cash, miles or points. Some credit cards may not be a straightforward as you think. That is not the case with Navy Federal’s AMEX card, for example, which is very straightforward – 3 points at supermarkets, 3 points at gas stations, 2 points at restaurants and 1 point on everything else. However, be careful of “chasing rewards” as that can lead you into more debt than you may want to have.
Balance transfer: Transferring credit card balances can help in saving you money on your interest rate on another card where you have a higher interest rate with a high balance. The way they work is by allowing you to transfer a higher interest credit card balance to a credit card with a lower interest rate, thus the termcredit card balance transfers. These cards generally start with an introductory annual percentage rate (APR) of 0% for a certain length of time. Paying within the promotional period can help you save money in the long run.
As with most cards, the better your credit score, you’ll have a better a chance of obtaining the credit card that you want.
As a member of Navy Federal Credit Union, I love all the credit card choices available. If you’re still unsure which card you should choose, or if you’re currently trying to overcome and reduce your credit card debt, Navy Federal can help you.
Because they care! They understand your needs because they’ve been serving the armed forces and their families for more than 80 years. They’re member-owned, and promise to always act in your best interest. Switch your accounts to Navy Federal today to start experiencing all the benefits of membership.